THE

JHARKHAND GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

7 SHRAWAN 1946 (S)

RANCHI, MONDAY 29^thJULY, 2024

FINANCE DEPARTMENT

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NOTIFICATION

11^th July, 2024

Revised Scheme for Constitution and Administration of the

Consolidated Sinking Fund of Government of Jharkhand

No. :29/B.S.G.-04/2015/509/Budget--

Title of the Scheme

The Scheme shall be called ‘The Consolidated Sinking Fund

(hereinafter referred to as ‘the Fund’) Scheme’ of the Government of

Jharkhand (hereinafter referred to as ‘the Government’).

Constitution of the

Fund

The Fund will be constituted by the Government of Jharkhand for

redeeming its outstanding liabilities.

Objective of the

Scheme

The Fund is to be utilised as an Amortisation Fund for redemption of

the outstanding liabilities of the Government commencing from the

financial year 2024-25.

Commencement of the

Operation of the

Scheme

The Fund shall come into force with effect from the date of the

notification. The Operation of the Scheme is as under:

No. 498

Jharkhand Gazette (Extraordinary), Monday, 29^th July, 2024

(a) The Fund shall substitute the existing fund mentioned under the

extant CSF scheme adopted by the Government.

(b) The outstanding balances of the existing fund under the extant

CSF Scheme as at end-March 2024 shall be transferred to the Fund.

31 of the second preceding financial year, or the amount of

redemption falling due during the financial year (April-March),

whichever is less, should be reckoned for arriving at the maximum

eligible limit for withdrawal from the CSF during the year.

(d) The Fund shall not be utilised for any purpose other than

redemption of the outstanding liabilities of the Government.

(e) The State Government can avail of short-term accommodation

under Special Drawing Facility (SDF) from Reserve Bank of India

(hereinafter referred to as ‘the Bank’) against the collateral of

investment made

CSF

for meeting

temporary

cashflow

mismatches, subject to the terms and conditions as fixed by the Bank

from time to time.

(f) The outstanding liabilities is defined to comprise both internal

debt and public account liabilities of the Government.

Contributions to the

Fund

The Government should make conscious efforts towards building up

the CSF corpus to five percent of the outstanding liablities within a

span of five years. There is no ceiling on such contributions to the

Fund in terms of number of times of making contributions in a year.

It is open to the Government to invest in the Fund from the General

Revenue at any time or from other sources such as disinvestment

proceeds, at its discretion. The Government shall not fund its

contribution to the Fund out of borrowings from the Reserve Bank.

Relationship of the

Fund with General

Revenues

The corpus of the Fund comprising the periodic contributions as well

as the income accruing to the Fund shall be kept outside the General

Revenue of the Government. The Fund shall be utilised in the

manner prescribed in this Scheme.

Administration of the

Fund

The Fund shall be administered by Central Accounts Section of the

Bank at Nagpur, (subject to such directions / instructions as the

Government may issue from time to time).

Investment of the

corpus of the Fund

The accretions to the Fund shall be invested in Government of India

(GoI) dated Securities, Special Securities of GoI, Treasury Bills and

State Government securities of other States of such maturities as the

Bank may determine from time to time in consultation with the

Government.

Explanation

(a) The accretions to the Fund shall include the periodic

contributions and the income accruing to the Fund from investment

thereof.

Jharkhand Gazette (Extraordinary), Monday, 29^th July, 2024

(b) The Bank will make available the securities for investment by

acquiring the securities from the secondary market, without loading

any charge other than that indicated in paragraph 10.

Account Transactions

(a) The Bank would arrange to raise a debit to the account of the

Government maintained with it as per the advice of the Government.

(b) The contributions to the Fund shall be invested by the Bank in

Government Securities as indicated in paragraph 8 in multiples of

Rs.10,000/-.

shall be reinvested by the Bank in a similar manner, in multiples of

Rs.10,000/-.

(d) The investments held in the Fund and maturing during currency

of the scheme shall be reinvested in accordance with paragraph 8.

(e) No withdrawals will be allowed from the Fund until completion

of five years from the date of constitution of the fund.

Explanation

(a) Withdrawals may be allowed starting form the next financial

year on completion of five years from the date of constitution of the

fund.

(b) The debit to Government on account of the periodic installments

will be accounted under the major head 8222-Sinking Fund-01-

Appropriation for Reduction or Avoidance of debt-101-Sinking

Funds. On the maturity of the loan, the balance outstanding under

the head 8222-Sinking Funds-01-Appropriation for Reduction or

Avoidance of debt-101-Sinking Funds will be credited to the

head 8680-Miscellaneous Government Accounts-101-Ledger Balance

Adjustment Account.

investment less the incidental charges in the usual course. However,

in order to ensure that the investment transactions of the Fund do not

get mixed up with other transactions, these will be indicated

distinctly in separate scrolls.

(d) The Bank shall arrange to collect interest on the investments and

credit the same to the Fund on the due dates.

(e) On the maturity of the securities, the Bank shall arrange to

redeem the securities. In case of premature disinvestment to meet the

liability on account of the claims to be paid, the Bank will decide on

the securities to be liquidated and sell the securities at the ruling price

and credit the amount realised, less incidental charges, to the Fund. If

these securities are in loss, Bank may in consultation with the

Government decide on the securities to be liquidated. As in the case

of debit scrolls, the Bank shall use separate scrolls for the receipts.

(f) The provision for expenditure on account of the periodic

contributions shall be made in the Budget of the Government under

the relevant head. The extent of expenditure to be financed from the

Fund shall be withdrawn from the Fund by the disposal of the

investment.

Jharkhand Gazette (Extraordinary), Monday, 29^th July, 2024

(g) The Bank shall open a Current Account and Subsidiary General

Ledger Account in the name of the Fund and furnish to the

Government as at the end of September and March each year, a

statement showing the details of investments.

Service charges for

administration of the

Fund

The Government shall pay to the Bank a commission at the rate of 1/8

percent of one percent on the turnover of the Fund or at the rate to be

mutually decided from time to time.

Accounts and Audit

The accounts of the Fund and the investments shall be maintained by

the Accountant General of the State in the normal course. The Bank

will maintain subsidiary accounts in such manner and details as may

be considered by the Government in consultation with the

Accountant General.

Savings

The Government shall issue instructions relating to the provisions of

the Scheme as may be considered from time to time to enable smooth

functioning of the scheme. In case of any difficulty in the operation of

any provision of Scheme, the Government may, if satisfied, relax the

provisions.

By order of the Governor of Jharkhand,

Prashant Kumar,

Secretary to Government.

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Printed & Published by the Superintendent of Jharkhand Government Press, Doranda, Ranchi.

Jharkhand Gazette (Extraordinary) 498 -- 50.